Northampton County Pension Investments Moved Out Of Stocks

A representative of the company that manages Northampton County's pension fund investments said yesterday those investments have participated strongly in the upward trend of the stock market.

However, James Hanes, of C.S. McKee, Pittsburgh, told several members of the county Retirement Board that his company has adopted a conservative investment posture for several reasons. The board took no action because it lacked a quorum.

Hanes said the conservative approach means liquid reserves have been increased and money has been taken out of the stock market. He said liquid reserves are short-term investments, like Treasury bills, that don't fluctuate in value.

"The market has advanced over 100 percent since its lows of August 1984," he said in explaining the conservative strategy. "We have said . . . it has really been in a bull market phase for over five years, and that has been one of the longest periods of time in history where the market's basically been in a bull market without any significant correction (downward trend)."

Hanes added of the long, upward market trend, "It's running out of time."

The consultant said two of the three things that normally propel the market upward - falling interest and inflation rates - are no longer in existence. "It's just another verification that it's time to put a little more conservative strategy into the portfolio," he said.

The value of the fund investments was reported yesterday to be $52 million.

The value of the Hugh Moore Trust investments was reported yesterday at $1.5 million. The county uses the trust for operations at Hugh Moore Park, near Easton.